Consider this blog post #001 the Foundation’s equivalent of printf (“Hello World!”); where we provide two pointers to extant information on the why, what, and how of our effort, so that we then can jump to the important and complex topic of ransomware, electronic payment, and the importance of Knowing Your Customer/Client (KYC) in the same post.
WhyTheFoundation WhoAreWe
So, let’s begin with the first pointer to extant information about the Foundation, namely why do we exist and what is our mission? The Foundation exists because we want to make sure MobileCoin is amplifying the values of choice, responsibility, and trust in its mission: building a financial network that empowers global commerce. The work of the MobileCoin Foundation is to embody those values, beginning with the idea that we include an external Board separate and distinct from MobileCoin Inc. that can raise questions, discuss issues with the larger MobileCoin community, and improve the design of MobileCoin based on community feedback.
Together we work towards safe and affordable financial services, so people everywhere can thrive.
As for the second pointer to information on who are the people tied to the MobileCoin Foundation, we invite folks to find more information about that on our website – noting that while Joshua Goldbard (CEO of MobileCoin) participates on the Board he does not Chair it. For all of 2021, Sarah Novotny did the Chairing, with both Renée DiResta as well as Alex Feerst serving as fellow Board Members, and Dr. David Bray serving as both Board Member and now in 2022 the Foundation’s part-time Executive Director in helping to scale-up our work. At the Crypto Renaissance event that happened on December 2021, Renée provided a great presentation on “Privacy & Security Tradeoffs” that you can replay on YouTube. Sarah and David also provided some initial details on the Foundation’s plans for the future that similarly is available for replay on YouTube too.
So, with those initial pointers provided, let’s now jump to the important topic of why MobileCoin believes the value of choice matters when it comes to electronic payments.
Why Choice Matters
In the world of fiat currencies and printed cash – if, as a consumer, you use cash to pay for something, there’s almost no audit trail linking you to spending $10 to buy something. Similarly, if you withdraw cash, rarely does anyone record the specific serial numbers of the bills provided. Cash provides for privacy. However large amounts of cash can also be dangerous – if you’re walking down the street with $20,000 in your pocket, that might make you a target for robbery precisely because if someone were to rob you of that $20,000 there would be little recourse to trace those specific dollars because of the private nature of cash. The privacy afforded by cash can be exploited by thieves.
Also, in the world of fiat currencies, we should note that most nations have opted that if the denomination of cash exchanged is sufficiently high, say $10,000 USD – then some checks occur regarding who is the person making the transaction. This is because civil societies have recognized there’s a balance to be struck between individual privacy vs. preventing possible bad things tied to large, potentially anonymous financial transactions that might include human trafficking or other unsavory activities. Cash by default is private, however when a certain monetary threshold is passed, then a balance between private and preventing bad things from negatively impacting societies is required.
Returning to the world of electronic payments – MobileCoin believes that individuals should have the ability to make choices akin to the world of cash. By choice MobileCoin means choice about when and where you share your digital data associated with your financial transactions.
MobileCoin emphasizes this value of choice about when and where you share your digital data, noting that not all cryptocurrencies are the same. For example, some other cryptocurrencies are fully auditable to anyone – meaning that entities with sufficient computing resources can sort through all financial transactions tied to an account. As the world moves to electronic payments, this runs the risk that everyone’s financial transactions risk becoming fully auditable to entities in the middle. That’s not something the MobileCoin Foundation wants to see happen – do you?
Do you want the retailer that you’re buying from online to know your buying habits for the last three years? Do you want your web browser provider or Internet Service Provider to know all your electronic financial activities? Who should have control of your financial history?
We will explore answers to these important questions – and how we can avoid a surveillance state (as well as surveillance capitalism) while also complying with financial laws to avoid money laundering, human trafficking, small arms trafficking, or other nefarious activities tied to the flow of large amounts of money in future blog posts.
Sincerely, The MobileCoin Foundation Board Be Bold. Be Brave. Be Benevolent.